Thanks, Krista. Good morning, everyone, and thanks for joining us for our first quarter 2026 earnings call.

This morning, we issued our earnings release and a presentation that we will reference during this call. All of those documents are available on our website at investor.jetblue.com and on the SEC's website at www.sec.gov.

In New York to discuss our results are Joanna Geraghty, our Chief Executive Officer, Marty St. George, our President, and Ursula Hurley, our Chief Financial Officer.

During today's call, we will make forward-looking statements about our outlook, strategy, and future performance. These statements are based on our current expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

Please refer to our earnings release and SEC filings for information about factors that could cause those differences. We may also discuss certain non-GAAP measures.

Reconciliations to the most directly comparable GAAP measures are included in our earnings materials and on our website. Now, I'd like to turn the call over to Joanna Geraghty, JetBlue's CEO.

Thank you, Koosh. Good morning, and thank you for joining JetBlue's first quarter 2026 earnings call.

I want to begin by thanking our crewmembers for their continued dedication during what has been another challenging start to the year. I also want to recognize the TSA agents for their commitment during this shutdown.

This first quarter included multiple winter storms and TSA disruptions, but through it all, we are grateful our teams remained focused on delivering a safe and reliable service for our customers. The conflict in the Middle East and its impact on fuel prices is the most significant headwind we face as an industry since COVID.

Given the sharp increase in the price of fuel and the expectation for elevated prices throughout this year, we are suspending our prior full-year guidance as we aggressively adjust to the evolving macro backdrop. I want to be clear: suspending our full-year guidance reflects external factors alone, and not a change in the strong progress of JetForward.

We have taken immediate action to offset fuel costs, with our ultimate focus on minimizing the financial impact and preserving our liquidity position. The three primary levers available to us are: adjusting fares to better align with input costs, moderating unproductive capacity, and pursuing additional cost-savings opportunities.

We recognize that customers expect strong value from JetBlue, and we're continuing to carefully balance our path to restoring profitability with meeting those expectations. Importantly, demand remains strong.

This backdrop allows us to recover some of the increase in fuel costs, and as such, we've adjusted fares along with the industry over the last two months. Bookings have remained resilient amidst these changes, which is an encouraging sign.

However, the first quarter was already over 90% booked before fuel prices suddenly spiked, reducing the opportunity to immediately recapture the impact of this significant fuel increase. We expect 30% to 40% fuel recapture in the second quarter, and plan to achieve 100% recapture by early 2027.

Given the broader cost environment, we've also made targeted updates to ancillary fees, such as checked bags. This allows us to better cover costs while keeping our base fares competitive.

We will continue looking for additional ways to strengthen revenue performance throughout the rest of the year. At the same time, we are aggressively reducing capacity, targeting adjustments in off-peak and shoulder periods.

We've acted quickly, reducing capacity by nearly 1 point versus close-in expectations in the second quarter, with plans to reduce the second half by at least 2 to 3 points. While we are able to reduce capacity closer in, as we've done, these decisions are more beneficial when made at least 60 days in advance to take even greater advantage of cost-savings opportunities.

With demand continuing to remain strong, it's important we take a flexible approach to trimming capacity as we head into the peak summer season. We plan to closely monitor market conditions and expect to reduce additional capacity after the summer peak, assuming fuel prices remain elevated.

In addition to managing capacity, we have opportunities to reduce other expenses and better align our cost profile with capacity. This includes efforts to reduce controllable spending and hiring, and in a lower-capacity environment, we also expect savings on maintenance and other variable costs, such as landing fees.

As we meaningfully adjust capacity to address higher fuel, we are committed to pulling all levers available to mitigate potential upward pressure on unit costs. Alongside these efforts, we believe JetForward remains the right strategy to navigate us forward.

Across each of our priority moves—reliable and caring service, best East Coast leisure network, products and perks customers value, and a secure financial future—we are seeing clear evidence that our strategy is working, and we remain on track to drive $310 million of incremental JetForward EBIT in 2026 and $850 to $950 million in 2027. As a reminder, we have transformational initiatives launching this year, including domestic first class, the continued implementation of our Blue Sky collaboration, and our second Blue House, which are expected to drive significant value for years to come.

In closing, demand remains intact, our JetForward initiatives are performing, and we are actively managing levers within our control. I remain confident we have the right strategy and the right team to navigate yet another challenging year for the sector, even in the face of these macro factors.

As we gain greater visibility into fuel and its impact on the macro environment, we will plan to provide an updated view on full-year expectations. I'll now turn it over to Marty.

Thank you, Joanna, and thanks again to our crewmembers. We delivered strong RASM performance, a positive 6.5% in the first quarter, in line with our revised guidance, and exceeding the midpoint of our initial RASM range by 4.5 points.

The Caribbean airspace closure in January and winter storms Fern and [unclear: Hernando/Orlando?] combined to reduce capacity by nearly 4 points, which benefited our RASM performance by 2 points.

The remaining 2.5 points of our RASM beat is a reflection of demand strength and the effectiveness of our JetForward initiatives. Demand trends strengthened as the quarter progressed, and importantly, that momentum has carried into the second quarter.

We saw strength across the booking curve, both close-in demand and further out, with improvements in both peak and trough periods. Premium continued to outperform core, with year-over-year premium RASM better than core by 9 points in the first quarter.

We are encouraged by improvements in core demand and RASM, which is now strongly positive year-over-year, reflecting a more balanced demand environment across our offerings relative to what we experienced last year. Delivering the differentiated JetBlue experience across each unique customer offering—Mint, Even More, and Core—remains a priority, reinforcing our commitment to all customers, not just select segments, even as fuel costs remain elevated.

Lastly, while we saw strength in both domestic and international bookings, domestic has recovered meaningfully, and year-over-year RASM outperformed international. First quarter RASM was also benefited by about 1.5 points from the shift of outbound Easter traffic into late March.

This was a historic quarter for our loyalty program, highlighting the investments we've made in our product and operation. Loyalty cash remuneration grew 19% year-over-year, driven by double-digit growth in spend on the JetBlue cards.

In addition to record levels of spend and a 45% increase in card acquisitions, we achieved all-time highs for TrueBlue active members and attach rates. Blue Sky is also driving co-brand sign-ups in our non-focus-city geographies, reflecting the broader reach the collaboration brings to our loyalty program.

We continued to add utility and value for our members in other ways this quarter, including the ability to use points for ancillary purchases, which is off to a very strong start. We also launched Family Tiles, an industry-first that allows parents to earn status faster when traveling with their children.

Finally, customers are responding exceptionally well to our Blue House at JFK, with NPS trending well above expectations and driving premium credit card sign-ups beyond our initial targets. We believe the opening of our next lounge in Boston later this summer will be a further catalyst for premium growth, alongside the launch of domestic first class expected in the second half.

As these products and perks ramp, and both new and existing members deepen their loyalty engagement, we expect meaningful sequential growth in loyalty revenue throughout the year. Strong customer response to our strategic growth in Fort Lauderdale drove first quarter RASM growth of 5%, even with capacity growth of 23%.

In late March, we announced another round of additional service from Fort Lauderdale: one new destination, to Cleveland, and added frequencies on seven, excuse me, nine routes, where customers want more choices where they fly. With the addition of Cleveland, JetBlue will have launched non-stop service to 21 cities and increased frequency on over 20 high-demand markets from Fort Lauderdale over the past year, further strengthening our investment in building depth and connectivity in Florida's biggest premium market.

Through our recent growth and competitor reductions, we've been able to take advantage of newly available gate space to build a schedule with four connecting banks beginning this summer, up from two banks previously. This provides our customers in the Northeast with significantly more opportunities to connect to our growing portfolio of destinations in the Caribbean and Latin America.

We remain excited about the long-term opportunity in this focus city and continue to view it, in addition to key leisure destinations across the state of Florida, as an essential component of our network strategy. We've now grown to 11 destinations in Florida, following the launch of service to Destin-Fort Walton Beach from both New York and Boston in the first quarter.

Blue Sky reached a new milestone in the first quarter with the launch of interline flight sales with United. We are encouraged by the early results we're already seeing and are excited about the new opportunities we expect this collaboration to bring to our customers.

This quarter, reciprocal loyalty benefits across Mosaic and MileagePlus tiers are expected to turn on, in addition to sales of rental cars through our Paisly platform. For the second quarter, we expect continued strength in RASM, supported by sustained demand trends and progress from our JetForward initiatives.

This quarter is anchored by peak periods in early April, late May, and late June. The Easter outbound shift represents a second quarter headwind of about 1.5 points of RASM.

As a result, we expect RASM to grow 7% to 11% year-over-year on 1.5% to 4.5% more capacity. Our investments in Fort Lauderdale now comprise all of our second quarter capacity growth.

We are taking a similar approach to guiding RASM as we have in the past, guiding to what we see today, which points to a sustained level of strong yields and loads for the remainder of the quarter. As we progress through the quarter, we plan to monitor the demand environment for opportunities to continue optimizing yields to help offset fuel costs.

As of today, over two-thirds of the quarter's revenue is on the books, and as Joanna mentioned, our second quarter RASM guidance implies we recapture 30% to 40% of the fuel cost increases versus our initial plan for the quarter. We are encouraged by the demand trends we're seeing and believe we are well-positioned to generate significant RASM growth this quarter as we head into the summer peak travel season.

Now, I will turn it over to Ursula.

Thank you, Marty. As Joanna mentioned, the start to 2026 was marked by a dynamic operating environment and macro backdrop.

The industry climate seems to be evolving every day, and we are responding quickly to position JetBlue to achieve our financial priorities. For example, we've actioned several capacity reductions across the second quarter and plan to stay nimble in the second half of the year.

At the same time, we are prioritizing capacity investments in our Fort Lauderdale focus city, where customer response has been strong and the resulting RASM is performing extremely well. Our underlying business is clearly improving, with a roughly 5-point spread between RASM and CASM-ex expected at the midpoint of our guidance ranges this quarter.

We haven't seen a gap like this in years, and it reflects strong demand for our product, better cost discipline, and real momentum from our JetForward initiatives. During the first quarter, CASM-ex fuel growth finished up 6.6%, 4 points of which was due to close-in capacity reductions from the operational disruptions.

Without these impacts, CASM-ex would have finished up 2.5%, or 2 points better than our initial midpoint. One point of this beat was due to cost-saving efforts, while 1 point of spend is expected to shift into the remainder of the year.

For the second quarter, we expect CASM-ex fuel to increase in the range of 3% to 5% year-over-year. We continue to expect CASM-ex fuel growth to moderate down during the second half of the year, with over 2 points less unit cost growth than the first half, although this remains subject to how the price of fuel evolves in the coming months and our final capacity levels.

Average fuel price for the first quarter was $2.96, 26% higher than the midpoint of our initial guidance. We expect second quarter fuel price to be in the range of $4.13 to $4.28, with the midpoint 75% higher year-over-year, which is derived from the forward Brent curve as of April 10th.

As a reminder, every 10-cent increase or decrease in fuel price is the equivalent to about $85 million of expense for the full year. To help offset a portion of fuel costs, we continue to focus on our fuel efficiency programs, with 30% of our second quarter capacity powered by more fuel-efficient new engine technology, supporting a targeted 5% fuel efficiency improvement over the last three years.

With oil and crack spreads expected to remain elevated for a sustained period, we are actioning incremental cost reductions beyond capacity cuts to mitigate the impact. These include reducing spend across both opex and capex, and slowing hiring in some work groups to better align with our capacity expectations.

At the same time, we are executing on our structural cost initiatives under JetForward, including rolling out new technology and AI to support improved planning for our crew and operation, launching a sourcing center of excellence to further optimize contract spend with business partners, and implementing more efficient insourcing and outsourcing opportunities across the business. Taken together, we expect our near-term cost reduction efforts and our JetForward cost initiatives to support strong cost control this year.

While we did suspend our full-year CASM-ex fuel guidance, we expect its historical relationship to capacity to continue this year, which implies roughly flat CASM-ex fuel on mid-to-high single-digit capacity growth. Turning to our fleet and capital expenditures.

In the first quarter, capital expenditures totaled $141 million, $59 million lower than our initial guidance due to timing shift of deliveries. Looking ahead, we expect approximately $275 million of capital expenditures in the second quarter and approximately $800 million in 2026.

There has been a slight shift to our A220 deliveries, and we now expect 12 total aircraft deliveries this year, down from our January guidance of 14 aircraft. As previously discussed, we expect capex to remain below $1 billion annually through the end of the decade.

Shifting to our balance sheet. We believe our unencumbered asset base and liquidity help us successfully manage through industry shocks like these, and I am pleased with the runway we've built for JetBlue.

We raised over $3 billion back in 2024 to secure our financial future and give JetForward a runway to perform. The cash we have on hand as a result is a valuable cushion in this volatile high-fuel environment.

We ended the quarter with $2.4 billion of liquidity, or 26% of trailing-12-months revenue, above our liquidity target of 17% to 20%. This excludes our $600 million undrawn revolving credit facility.

Earlier this month, we raised $500 million secured by aircraft collateral, with an accordion feature that allows us to upsize to $750 million. We plan to reassess our funding needs as the year progresses.

We also recently repaid the remaining $325 million of our 2021 convertible notes. Lastly, following this month's capital raise, our unencumbered asset base remains over $6 billion, with approximately a quarter in tangible collateral.

Our priority remains maintaining a strong liquidity position and ensuring JetForward has the runway to perform. To wrap up, the environment we are operating in is challenging and volatile.

We are focused on taking swift action and executing on our JetForward strategy to put JetBlue in a position to restore operating profitability when the environment has normalized. We've taken meaningful action across the three main levers we control: fares, capacity, and costs.

We are pleased with the early results of these actions. We remain encouraged by the underlying performance of the business and are confident that JetForward is the right plan to navigate this challenging environment and deliver value for our shareholders.

With that, we will now take your questions.

Hey. Two questions here with respect to your domestic first class.

Have you actually started selling that for the back part of the year? If you are, can you just give us a sense of what the initial uptake looks like?

Hi, thanks for the question, Mike. No, we have not begun selling it yet.

We want to wait till we understand fully the implementation timeline. As we said, it was going to come in second half of 2026, and we're still on track for that to happen.

We will announce the open-for-sale date when we know the first planes are going to be out there for sale.

We're currently going through the certification process.

Great. Then just my second question, probably to you, Joanna.

There appears to be a subset of the industry that, among other things, is requesting a suspension of the ticket tax. Given that that is a user fee to fund the system, could we be in a situation where half the industry is, I don't know, subsidizing the use of the system for the benefit of the other?

Is something like that even possible? I'm just curious about your thoughts about that.

Thanks for taking my question.

I'm not entirely sure. Maybe the fuel excise tax you're speaking about, but, yeah, no, at the end of the day, if it were to apply to one carrier, we presumably need to apply to everybody.

The numbers associated with that, we looked at that early on, aren't significant. Every dollar counts, but it ultimately was somewhere in the area of $20, $25 million annually for JetBlue.

Okay. Okay.

That's, yeah.

Thank you.

I

would only add in there is we, as an industry, view this as a very unfair tax because we way overpay versus private aviation. I would love for it to be reformed for other reasons, but I'm not sure this is the reason.

Hi everyone, thank you. I'm trying to understand the comment that you were 90% booked in 1Q when jet fuel started to move up, and just what that means to sequentials.

Again, I realize you expect 30% to 40% recapture, but I would think that the fact that I think there's been, what, six industry fare increases, that the uplift in revenue would have been a little bit better in the 2Q. If you could just talk about what's going on there on a sequential step-up, I realize capacity's stepping up with it, but just any thoughts.

Thank you.

No, hey Conor, thanks. The comment was about right now we're 90% booked for the second quarter.

Where there's another 10% of revenue to come, that was not the number on March 31st or March 30th, whenever fuel spiked. If I have that right.

Wait, we have

No, 1Q, we were 90%.

Yeah, 1Q, we were 90% booked, cuz remember fuel spiked in early March. We were 90% already booked for 1Q, you aren't able to recapture with those fare increases some of the bookings, cuz they were booked in January and February at a lower price.

Everybody would have been largely in the same position as us because there were already bookings that had taken place for 1Q. Headline, there's no news there.

It's just saying we aren't able in 1Q to take advantage of the fare increases because people had already bought fares at the lower prices. Going forward, once those fare increases started going in, very different story.

Helpful. Then Ursula, I think you have $6 billion of unencumbered assets.

I realize you probably don't want to touch that quite yet, but if you could just talk about the accordion that you have within that current structure. What scenarios you would see yourself looking to tap that $250 million, just in general.

Thank you.

Thanks for the question, Conor. Extremely pleased with where we ended the quarter in terms of liquidity.

Our target is the 17% to 20%. We ended the quarter at 26%, we still have a cushion.

Our original 2026 plan assumed that we would raise $500 million this year. We executed a deal utilizing aircraft to lock that in.

We've drawn on a portion of that already and we'll draw on the second portion later this year. We obviously did build in that flexibility in the accordion.

We do have an incremental $250 million that we can draw on. Given the magnitude of the fuel price impact that we're seeing in the business, we will most likely draw down on that in order to maintain our 17% to 20% liquidity target.

Thank you.

Oh, hey, good morning. Just Ursula, following up on that last question.

What additional cash could potentially be raised from extracting equity from deliveries or just aircraft financing? Under what scenarios might you want to raise additional capital beyond that accordion?

Thanks for the question, Dan. Our target is 17% to 20% liquidity, I feel comfortable staying within that range.

The aircraft that we're purchasing this year, there's 12 of them that are coming, we're assuming we purchase those with cash. If we are at risk of falling below our liquidity level, we could decide to lever up those new deliveries.

As I mentioned in my script, we currently have a healthy unencumbered asset base of the $6 billion. Of the $6 billion, about 30% it is incremental aircraft and engines that we currently have on property.

Then we also have our slots, gates, and routes, we have our brand, we have incremental loyalty that we can use. We have options.

If we're at risk of falling below our liquidity target, we'll assess all markets and look at all of our collateral and decide what would be the most effective.

Yeah. Thanks for that.

Then second question here, I think maybe for Dave or Marty. Just going back to the script here, 2 points of RASM beat from stronger than expected demand, and demand that sort of accelerated at the end of the quarter.

I suspect demand at the end of the quarter was worth more than 2 points of RASM beat, but my question really is: what's driving that? How sustainable is it?

At what point would you expect demand to be more elastic?

Hey Dan, thanks for the question. I'd say two things.

I think if you look at the fourth quarter, when we did our fourth quarter call, 3 months ago, we did call out that we had revenue performance accelerating through the end of 2025. I think what we saw in early '26 is just consistent with what we'd seen in general.

With respect to the current revenue environment, I think it's clear that the revenue environment has been extremely robust, even in the face of pretty high fare increases. Frankly, I think that what you see in the industry right now is that air travel is still a really, really good value.

The A4A put out a document last couple of months or so looking at price changes from 2019 until 2026, and they're looking at 20, 30 different commodities. Air travel was the only one where prices are actually down from 2019.

Eggs up 96%, air travel down 3%. Frankly, I look at this, and I realize we still offer a really good value, and especially JetBlue, who's focused on the lower-fare part of the business.

I'll use a metaphor that we use here all the time, which is, in fact, we just looked at it a little bit ago. I think the first couple weeks of June, you can fly from Orlando to JFK for cheaper than it takes to take an Uber from JFK to Midtown.

Air travel is still a fantastic, good value. Honestly, with the quality of JetBlue, I think demand has held up very, very well for us.

We're very happy. Back to the point I made earlier, even with the price increases, we still see economy demand strong and actually positive unit revenue in the economy cabin.

I think it's actually very good for us.

Maybe I'll just add, our JetForward initiatives, we do see them contributing to this when you think about product, loyalty, and merchandising. They're driving stronger engagement and yield performance.

Our co-brand acquisitions are up. Elements of the strategy are also contributing to this stronger environment specific to JetBlue.

Perfect. Thanks, guys.

good morning, everybody. Marty, JetBlue ordinarily generates less revenue in the third quarter relative to the second quarter.

Of course, there's a positive Easter benefit in this year's second quarter, I guess that makes the comparison even tougher. There's significant yield momentum right now, fuel recapture improves over time.

What probability would you ascribe—I'm not asking for a guide, but what probability would you ascribe to third quarter revenue being higher than that of second quarter? Or is that simply off the table, no way?

I'd say a couple of things. For someone not asking for a guide, you seem to be asking for a guide.

You just can't

I'm asking for a probability. If you want to give me a number, I'm just asking for a probability.

Now, we've not guided third quarter, we're not going to guide third quarter. I will say that, based on what we're seeing in the demand environment right now, we remain optimistic that we will continue as the year progresses to start recovering more and more of the increased price of fuel.

Now, obviously, we need to recover more than that, because so many of our other inputs have gone up. I think we feel very optimistic about what we're seeing with demand.

Second thing is, certainly for the last month of the third quarter, we've talked about capacity cuts. As far as our internal planning, we've taken 2 to 3 points out of our second half supply, very much focused and concentrated more in the September through December period.

We're assuming fuel prices at the current curve, and because of that, there's certainly capacity that we think will not be economical. I think that's also very much contributory to a good revenue environment.

I will not go as far as giving you a guide, or probability, or any sort of percentages, but I'd say that as of now, we are very happy with the demand environment we're seeing, and not just in the premium cabin, but also in coach.

You're saying there's a chance. [laughter] Sorry.

Then second, Joanna, you're not an official member of this Association for Value Airlines, but I've seen varying press reports that maybe you did participate in the recent $2.5 billion bailout request. Can you just clarify and kind of bring us up to speed in general your thoughts as to selective government bailouts?

Thanks.

Thanks. I think high level, it's no secret that I think the last administration definitely contributed to a disadvantage in the industry, whether it's Spirit, JetBlue's proposed merger or the blocking of the NEA.

I think that's obviously contributing to a sector that is less resilient compared to some of the larger carriers. We're in a bit of a different position because we have obviously a very healthy unencumbered asset base and strong liquidity.

Never say never. We're open to anything and everything, assuming the terms would make sense for JetBlue.

At this point, we're focused on continuing to execute JetForward, continuing to control the pieces of the business that we can control to offset the impact of elevated fuel prices. We'll watch just like you're watching the news and see how that shakes out with Spirit and the value carriers, and whether anything comes our way.

Excellent. Thank you, everybody.

Hey, thanks. Maybe just follow up right there.

Joanna, in the scenario where Spirit gets support, but nobody else does, would this influence your thinking about consolidation?

No. At the end of the day, there's enough people out there that are commenting on every little piece of the business right now, and again, we're focused on executing the plan.

Even in the situation where there is a potential Spirit bailout, we're going to continue to execute our Fort Lauderdale strategy. As I think was mentioned in the script, Q1 ASMs were up 23%, RASM's up 5%.

Customers are clearly picking JetBlue because it's a better product, a better service, and we're going to fly, and they're not afraid flights are going to get canceled. We've got a great plan, regardless of the outcome of Spirit.

I feel for their people. We're hiring a number of them to try to make sure that they have a soft landing.

It's a really, really tough situation. There continues to be this imbalance of scale in the industry.

We're doing what we can with Blue Sky, but it is full steam ahead in Fort Lauderdale, and we look forward to continuing to bring the great JetBlue product and service there. We're now the number one carrier in Fort Lauderdale, bigger than when we were pre-COVID, and we look forward to continuing to grow.

Thanks for those thoughts. Then Marty, as you think about dialing down your schedule in the second half, what is your focus?

What types of flights are most under the microscope? Thanks for taking the questions.

All right, thanks. That's a simple one.

Fundamentally, we are assuming the fuel price for the rest of the year will match what the forward curve is saying. At that level, there are certainly a small percentage of flights that we believe will not actually be accretive during that time period.

Again, the economics of reducing capacity are very much biased towards reducing it further out in advance, because you can save a lot of expense when you do that. We did do a little bit of pulling from the May schedule, and our savings are much lower for that, for example, because the crews are already bid, they're going to get paid one way or the other.

When we make decisions this early for the fall, it's actually very effective for us to save some significant expenses. When you see where the pulls are happening, it generally is off-peak periods, Tuesday, Wednesday, stuff like that, nothing really unusual.

Although we did say and we are seeing good strength in the troughs, they're still troughs in comparison to the peak periods. This is a math exercise rather than a strategic exercise.

Always our goal is trying to get to the best op margin we can get to. If we see stuff that will not be contributing to that, we will certainly take action.

Thank you.

Hey, good morning. Marty, maybe just on Fort Lauderdale, given all the changes that you've done and the significant kind of investment there over the last years, I was curious, kind of post this summer rebanking, where are you in kind of the innings of really building up Fort Lauderdale, outside of maybe kind of the opportunity if you get more gates?

Yeah. It's a great question.

I think that the real question is what happens with our biggest competitor there. Now first of all, we have now added significant capacity down there.

We're double the size of our next biggest competitor. We did not go into this with any expectation of Spirit going away.

What we have done is we've taken advantage of gate availability that they've created with some of their pull-downs. We have been lucky enough to be able to take advantage of the gates to add more international service and have a more formal banking structure down there, which we're very excited about.

To the extent that they keep pulling down, we will backfill that capacity. Frankly, when you think about us adding a quarter of our capacity and still having RASM that's basically 1 point off the system RASM, that is outstanding performance.

I think what it shows is that the JetBlue value proposition resonates in South Florida. I think frankly, it's a market we're extremely excited about the arrival of the domestic first class products later on in 2026.

My view is success should breed success, and we'll absolutely continue to build Fort Lauderdale to the extent we can. I think when we first talked about Fort Lauderdale, we said our goal is to get it to the size of Boston, and I'd say when gate availability happens, it will absolutely be at that point.

Instead of being focused on two focus cities sort of holding us up, we'll have a third leg of the stool in Fort Lauderdale. Again, a lot of that's going to be predicated on gate availability.

Makes sense. Maybe just a follow-up, you sort of brought it up, the other focus, when you kind of first came back was really building the New England strength back up.

Just where are you kind of on that front?

Fundamentally, I'm very comfortable with what we've done in New England. I think the addition of service in places like Bradley, Providence in addition to what we've done in Boston, I think we're really excited about, and happy how the markets have responded.

We're not doing Fort Lauderdale at the expense of those markets. We do continue to have deliveries coming, which they will help fund Fort Lauderdale a lot.

Frankly, I think the most important thing to focus on is that the airplanes are going to follow where the demand is. We've been very happy with the demand we've seen in the Northeast.

We're sort of in year two of the ramp in these markets and in general, more or less ahead of where we expected they would be. Frankly, I'd say Fort Lauderdale is way ahead of the ramp that we had expected.

I think that's how Fort Lauderdale is going to attract more supply as we go forward. We are sort of coming into the summer period, which is a somewhat lower-demand period for Fort Lauderdale, but I think, once we get to the fall, sort of the November time period, I think we should expect significant additional growth for Fort Lauderdale to the extent that we have gates available.

Helpful. Thank you.

Good morning, and thank you for the question. You're seeing healthy card spend and acquisitions.

Can you unpack this by region? Is this really JFK-driven right now, and how does that influence your thinking for the opening of Boston and as well as how things are trending with Fort Lauderdale?

Hey, hi Michael, thanks for the question. I think, first thing, I would not say there's any significant regional differences in the card spend.

There's certainly significant regional differences in where the cards are, and the cards are basically New York, New Jersey, New England. That's the majority of our card business.

Frankly, one of the things we're focused on for 2026 is to increase our base in South Florida. I think we've done well with the credit card, but I'd say we're under-indexed in South Florida versus where we should be.

We already have efforts that are going on in South Florida to try to improve our card base. Frankly, I think as we've added so much capacity down there, and then plus the addition of the United capacity into the Blue Sky redemption opportunities so that customers can fly anywhere in the world with the TrueBlue points, we're really bullish about our ability to have a really broad offering from South Florida, and that will translate into credit cards.

Clearly, given the location of the Blue House, you can tell that New York and Boston are the focal points for the credit card business right now. As we've said this publicly, and I'll say it again, we are looking at trying to find space for a Blue House facility in Fort Lauderdale.

For those of you who know Terminal 3, it is a tough terminal as far as finding enough space for a lounge, but we are working with our partners at Broward County Airports Division trying to find a place for a lounge down there. No news to report because we haven't found the right solution yet that's right for everybody, but I do think that's sort of the natural next third step, and that will be a very good help for things like card acquisition.

Then on Paisly, you continue to ramp Blue Sky. Can you talk about the pipeline and initiatives to add additional partners to scale this platform?

Are you saying partners over and above United?

Yes.

For Paisly, we have talked to single-digit number of other entities, some airlines, some non-airline partners. We're actually in the RFP process right now with one partner, which we're very excited about.

Nothing to report now as far as details, but I think to the extent that airlines and other partners are looking for a partnership beyond some of the sort of traditional partners, I think we'll certainly be there for it. We are really, really excited about the technology platform that the Paisly team has built, and I'm looking forward to finally getting our first RFP, and our first evaluation after United, because I think we're going to be very competitive in this marketplace.

I think it's also worth noting that we are just now starting to get some of the United content into Paisly. Today, you can buy a JetBlue Vacations package that actually has United air in it.

JetBlue Vacations has sold packages to United destinations. We have rental cars coming very, very soon, hotels coming beginning of the third quarter, and we'll continue to go through the implementation for packages, cruises, things like that later in the year.

The relationship with United has been very strong so far. They're great partners, and, more than anything, we're excited to get their customer base experiencing the benefits of Paisly.

Thank you.

Hey, thanks so much for the time. Just wanted to stick with Blue Sky for a minute.

I think it was on this call a year ago you talked about a TrueBlue customer who might need to go to Omaha or Boise, and just the value prop for them. Are you seeing the response from those type of customers that you hoped for?

I know it's early days still, but what type of response have you seen from MileagePlus customers under your own network?

That's a great question. We watch this very, very closely.

We had put together a forecast of where we would expect a United customer to book on us, and it's exactly what we expected. It's it's things like, LA-New York, Boston-New York, excuse me, LA-New York, San Fran-New York, San Fran-Boston.

We've had surprisingly good results at DCA, DCA to Florida, DCA to Boston, given United's wide presence at Dulles. This is exactly what we were hoping for in this in this, partnership.

The ability to have JetBlue flights within the United distribution channel, I think is extremely helpful for us, because as as as strong as JetBlue is, we don't have the same, sort of, share of mind in places like, Washington, on the West Coast, places like that. It's doing exactly what we thought it would.

We're very much looking forward to actually, expanding this. We're still working on plans to create what we're calling mixed-metal connections, which is us, this would fly JetBlue into, let's just say example, we just we just went back into New York-Houston, which we've been out of for a while.

That'll be in the United banks, and customers can fly New York-Houston on JetBlue, and then fly Houston to El Paso or somewhere, on United going forward. We don't have a date for that yet, cuz that's actually a bit of a technology challenge, but we're optimistic that that'll be coming as well.

Overall, at the core, this is like the other 50-something interline relationships we have with a lot of partners. It just is with a very big airline that has really great distribution strength, that compliments our network really well.

I'll just add, the whole point is to not provide customers with any chance to choose anybody other than JetBlue, particularly in Boston where we have a very robust schedule and network, likewise in New York. We were with an investor who was telling us a story about how he was looking to fly to Asia, would typically have chosen one of our competitors that's large in Boston for that trip, but because we had this partnership with United, he booked on JetBlue, the United flight, earned TrueBlue points, and was able to fly to Asia and picked us over the competitor because we had that connectivity.

This is the goal of Blue Sky, and the point about delivering more scale and a broader network to our customers, given that we do have a bit of a scale challenge in the markets that we're in.

Thanks so much for that. That's really helpful color.

Then just as a follow-up for Ursula, just curious, obviously it's been a pretty fluid environment the last few years coming out of COVID. Just some lessons learned on pulling controllable spend out, kind of last minute or closer in than maybe you were expecting, and then just some levers you're looking to pull in the second half of the year.

Thanks again for the time.

Thanks, Tom. This is one area where I'm just like super proud of the team, and the way in which they've managed controllable costs.

We pulled a significant amount of capacity out of the network last year, given the lack of demand, and, the team found $40 million, that that allowed us allowed us to, maintain our our full-year guide. We get creative.

There's everything from, better aligning hiring, we revise maintenance schedules, we've reduced all discretionary spending, the team has made great progress on our fuel efficiency, initiatives. We have driven, 5% savings, over the last three years, and and so super proud of of the team.

They are in the process of also ramping up all of the cost initiatives associated with JetForward. Creating a sourcing center of excellence, we're leveraging data science and AI to build tools so that we can drive better operating efficiency and put in place more effective planning.

As a reminder, we've gone through and and simplified the fleet, right, by exiting the E190, and and so, we've got a multitude of levers at our disposal, and I'm confident that, this year, our cost profile definitely improves in the second half of the year versus the first half. Q1 is kind of the high watermark, obviously it was also impacted by disruptions.

As JetForward cost initiatives ramp through the rest of the year, and as, and as capacity, grows slightly in the second half of the year, we'll continue to see efficiency. We're going to do everything we possibly can to come as close as possible to the original full-year controllable cost guide.

Hey, good morning, and thank you for taking the question. Joanna, [laughter] another frustrating year, right, because we have volatility in oil markets, and it's fifth or sixth year here of not turning a profit, or potentially not turning a profit, I should say.

You mentioned it earlier, just the lack of scale versus maybe some of your larger competitors where there's objectively better balance sheet, better profitability. How do you structurally address the lack of scale in your business relative to those of your competitors that are doing better and have done better in this whole time period?

Is there something you need to think about maybe strategically?

Thanks thanks for the question. I think maybe let me start with I'll get to your question, but I want to start maybe first with JetForward, and we are seeing JetForward working and driving, underlying performance in the business.

If you look at our operating margin for Q1, and adjust for fuel, it would have actually been 5 points better than the, it would have actually sorry, it would have been 5 points better than the actual operating margin, 3 points better than implied guide, -10 down to a -5 if you adjust for fuel, and, the implied guide was actually -8. Some nice progress there year-over-year.

There was a 3-point expansion when you adjust for for fuel. As you think about sort of those those early proof points, we are seeing JetForward working.

We're seeing the gain, from NPS, we're back top of the industry, nice progress in Fort Lauderdale, obviously a 5-point RASM CASM spread in 2Q of this year, which is the most we've seen since the start of JetForward. We've got a whole series of initiatives.

It's a big year for JetForward this year, including the Blue Sky implementation, Blue First, lounges, and the list goes on. The strategy is working.

Obviously, the challenge is the macro environment and, these these the volatility that we just, we keep seeing. While the macro factors do impact the timing of our return to profitability, the goal is when those subside that we're going to see all the benefits of JetForward come to, come to fruition.

We're just going to keep executing, try to control what we can, probably the most underused expres- most overused expression lately, but control what we can, and continue to execute those initiatives. Regarding scale, we recognize the importance of scale.

It's why we tried to do the NEA, it's why we tried to do the Spirit merger. Now, we've pivoted, and we're focused on Blue Sky.

The early points we're seeing with Blue Sky are we are giving more utility and more relevance to customers and giving them a reason to choose JetBlue, even if we maybe don't serve a particular destination, because we're we're a bit smaller. That said, we continue to raise these concerns in Washington, continue to focus on what are the things this government can do to help, help with that imbalance.

We're not focused on relying on on the government. We're focused on, what we can control, and, that's where Blue Sky fits in, our network and our loyalty platform and how we continue to accelerate those, deepening relevance in the places where people know and love our brand: the Northeast, Fort Lauderdale.

While scale will continue to be a challenging thing for, all mid-sized and small carriers, we're controlling what we can. We think Blue Sky's an important part of helping with that, and then Paisly's the other piece of the puzzle.

That's a very low capital business, one that should drive nice earnings over time, and gives us sort of an independent revenue stream. That should help propel us back to profitability over time.

The hope is when the macro subsides, the plan will will produce, and, those early signs are it is producing, it's just being masked by some of these macro headwinds.

Appreciate the very thorough answer, Joanna. Ursula, I guess as you think about capital needs, is taking potentially more debt the right path here as well?

Listen, I'm cognizant that the balance sheet isn't where we want it to be. It's clearly been strained post-COVID.

Our number one priority is ensuring we maintain adequate liquidity to obviously navigate volatile times such as what we're in at the moment. I acknowledge the level of interest expense, it is material, and so, we don't take debt raises, that decision, lightly.

We need to maintain our liquidity target of 17% to 20%, and we try to be super thoughtful and cognizant. Our number one priority, as Joanna mentioned, is continuing to execute on JetForward and get to a breakeven, or better op margin.

That was the goal this year. Clearly, we're now facing material headwinds, which makes that exceptionally challenging.

The goal is positive operating margin number one, number two, it is delivering free cash flow, and then number three is delevering the balance sheet. We need to focus on the things we can control and execution, and in terms of liquidity, in the back half of this year, if there's risk that we fall out of our 17% to 20% target, we will assess all markets, and we've got $6 billion of unencumbered assets, we have some flexibility to choose how we raise on a go-forward basis.

Thank you.

Good morning, thanks a lot for taking my question. I want to circle back on the second quarter recapture rate of 30% to 40%.

It does seem a little lower than some of your larger peers, who are say about 10 points ahead on the recapture. Your booking curve is probably a bit shorter than them, since you have more of a domestic business.

By that, it would imply that more of the second quarter would be booked at higher fares for you. Any color on why the lower recapture rate versus the legacy peers would be helpful.

Thanks, Atul. I'm thinking about some of the things we've heard on the other calls.

I don't think we're dramatically lower than what I remember hearing. The one thing I would say is, I think the recapture rate is different at different fare levels.

Back to the point we made about JetForward, the biggest hole we have in JetForward is to improve our penetration in the premium market. I'm guessing that the airlines that are the $6,000 business class fares to Asia may have a different recapture profile than we do.

Again, that will be resolved or certainly get significantly better as we finish JetForward the next 18 months or so. When I look at our own internal calculations as far as our recapture, they may be a slightly different shape curve, but end of '26, early '27 is sort of what we've heard from other airlines as well, I'm not sure I agree with that.

We think it's maybe premium and corporate mix, which we're addressing through JetForward and our first class product launching at the end of the year. A little bit delayed maybe relative to them, but not meaningfully.

Got it. That's helpful.

Then as my second question, on the capital raise plan that you have, the $750 million total, what fuel recapture and demand scenarios did you use to come up with that number, that $750 million that you've secured for now? I think just understanding that would be helpful as we try to assess whether or not you might need to raise more capital later in the year.

Thank you.

Listen, at the highest level, our plan for 2026, our original budget had Brent at $63. [laughter] Clearly, we're in an environment where it's severely elevated.

The original budget for this year assumed we would raise $500 million in liquidity to maintain our 17% to 20% liquidity target. We locked in that $500 million.

As a reminder, we have an accordion, we can pull that accordion, and that's an incremental $250 million. It's too early to tell, given the volatility of oil in the back half of this year, what the impact is going to be.

This is part of the reason we pulled our full-year guidance. It is just the volatility has been so extreme, we don't have clear line of sight in the second half of this year.

We will assess as we progress forward if we need to raise more liquidity to maintain that 17% to 20% target.

I think the headline is we are planning for multiple scenarios at different fuel prices, and we're maintaining a level of flexibility so that we can time things and take advantage of our unencumbered asset base in the most favorable way possible. It's anybody's guess where fuel's going to be for the remainder of the year and into next year, we're trying to be flexible there.

That makes sense. Thanks a lot for that, and good luck with the rest of the year.

Good morning, everyone. I'll keep it to one question.

As we think about a response to demand elasticity or potentially demand destruction, I prefer more of the former as far as terminology, but if you could perhaps frame potential resiliency around yields. You have a lot of initiatives out here: Blue House, JFK, Boston, domestic first class, of course, Blue Sky.

Could you speak to that in a scenario where we do start to see some pushback or potential pressure bubbling up from more price-sensitive travelers against these initiatives that you have rolling out this year as we think about yield resiliency and things like that? Thank you.

Maybe I'll start, and then I can turn it over to Marty. I think just first and foremost, we're not seeing any meaningful elasticity.

Demand is strong across the booking curve. We are focused on yield.

This is consistent with the broader industry trends. Load factor is holding up well, and we are focused on cutting flights that don't make economic sense with the current fuel environment.

When you think about unique things as part of JetBlue in terms of where we have resilience, VFR customers are an extremely resilient part of the franchise. Then obviously, all the things we're doing to try to increase our premium share, which remains more resilient when inflation goes up, are all the right moves.

Domestic first, our Even More space as a cabin seeing really nice progress there. Then frankly, the locations we fly.

Fort Lauderdale is where we're growing. The only place we're growing right now is the largest area in Florida with the highest-income folks, it's much more premium than some of the other locations that we have.

We're happy with what we're doing to try to make sure we're taking advantage of those more resilient customers. Inherently in our model, we do have a very strong portion of JetBlue customers who are VFR, who do go home to their family and friends over the holidays and for vacations, and they've always been very loyal to JetBlue, and a group that is quite resilient.

I don't know, Marty, if there's anything you want to add.

No, I think the only thing I'd mention in addition to what Joanna said was, we've already taken action as far as reducing capacity in the second half of the year, and I'd say when we hit those windows of making significant cost commitments, we will clearly re-look at that market demand environment at that time, and if it makes sense for us to pull additional capacity, we certainly will. Again, our number one goal is to make sure to get op margin back where we want it to be.

I think being very flexible and open on capacity changes is an important part of that.

Great. Thank you.

Hey, good morning, everyone. Thanks so much for the time.

A bit of a follow-up to an earlier question, but there's a really strong 45% increase in credit card acquisitions in the quarter, and sounds like Blue House is one of the drivers of that. Can you give us some color on how much of the JetBlue premier card growth was underlying that system number, and then if you're able to share if there's a notable difference in annual credit card spend between the premier card and some of your other cards?

Hey Katie, thanks. I would say a couple of things.

We don't release a lot of detail, but I'll give you some color that I think should help. First thing is, we only lapped the premier card in the first quarter.

For half the quarter, there was no base to compare it to, it was really only March that we had year-over-year numbers. For the first year, we had put what I would consider to be a conservative, prudent forecast in, knowing the lounge was not open until later on in the year, and we significantly exceeded that number.

When you go to the 45%, yes, the premier card's definitely a contributor, but a lot of that is just the base plus cards that we offer every single day. I think that I want to go back to the point we made earlier about Blue Sky.

The secret sauce of Blue Sky is the utility it brings to TrueBlue. The utility of a TrueBlue point dramatically changed when you got the ability to earn and burn anywhere in the world on the United network.

I will throw into that, we didn't mention this in this call, but I'll throw it out here again, later on this year, we will have full elite benefits between the two airlines as well. If you're a Mosaic 4, you'll have a experience like you get on JetBlue when you're flying United later on this year.

Our goal is to make sure that our customers feel like that the TrueBlue program will bring them anywhere in the world they might potentially want to go, which is something we have not had for a while. To me, when I see the acceleration that we're seeing it, there's no change in approval rate as far as credit standards, it's just a lot more interest in the JetBlue pass.

That, to me, is something that really, really excites me about Blue Sky. I think people get very focused on comparing to other programs, but, frankly, this ability to have worldwide access for our customers to fly places that JetBlue could never imagine flying, I think that to me is the game-changer, and I think that's translating into credit card acquisitions.

I would also mention that we're very lucky that the core of our customer base is basically New York, New Jersey, New England. If you look at the economic status of those customers, it's generally a more affluent group and a high-spending group.

Having the spend go up as much as getting the base card, I think is also huge for us as well, and also better than some of the numbers we've heard from our competitors talking about spend.

That's really interesting. Maybe just final question for Ursula.

Appreciate we've suspended the full-year guidance, there's a lot of moving pieces. On my math, based on the color you've given on the capacity cuts versus original plan and taking into account the first quarter, it looks like your capacity will be up low-single-digit territory as of now.

I guess, first, correct me if I'm wrong, but if that's correct, is it reasonable to assume that on low-single-digit capacity growth, your CASM-ex will be kind of mid-single-digit range for the year, based on your commentary on the relationship between capacity and CASM? I guess anything we should be aware of when thinking about the cadence over 3Q and 4Q?

Thanks so much for the time.

Thanks, Katie, for the question. I think the historical relationship still stands between capacity and CASM-ex.

If capacity is at mid to high single digits, CASM-ex fuel would be flat. I think your example is roughly in that ballpark.

As mentioned in my script, we definitely expect CASM-ex fuel growth to moderate down during the second half of this year. Based on what we know in pulling 2 to 3 points of capacity in the second half of the year, our unit costs will be over 2 points less in 2H versus 1H.

That's structurally where we sit today. I do acknowledge, this is all dependent on the oil backdrop.

Clearly, if we start to get some relief or further pressure, we will adjust capacity as necessary. Then I mentioned earlier in the Q&A, the team has done a historically great job at executing on controllable costs, and I have a lot of confidence that we can get as close as we can to the prior guide, given what we know today.

Thanks so much. Appreciate it's a moving target.

Hi, this is Madison on for Ravi. Thanks for taking the question.

I was just wondering if you guys could give just some more color, I know you've touched on it a bit, but just your thoughts on international in light of potential fuel shortages in Europe, and kind of resource allocation across the company, and if there's kind of any opportunity to cut back there, or do you think you need to defend the slots you have?

Appreciate the question. We serve eight different countries over in Europe.

I think our frequency this summer will be about 14 daily flights. It's only 6% of our ASMs as we navigate through the summer.

The point being, it is a small part of our network. Obviously, there continues to be supply concerns over in Europe.

We're watching it very closely. We're working with A4A and our peers to advocate for certain operating procedures so that we can consume as much fuel as possible.

We're also hopeful, given our flying is all long-haul, that that will be more protected versus the short-haul flying. We're watching it very closely, and we're engaged and involved, but the exposure is minimal for us.

Got it. That makes sense.

Thank you.

Hey, guys. Thanks for taking my question.

I just wanted to better understand the philosophy behind the capacity cuts in the back half. I think it's fantastic that you guys are making some changes in response to fuel.

It's not just you, but across the board, companies have been a little bit reluctant to cut to levels that seem to more directly offset what's going on in the fuel environment. What is your guiding light as you contemplate 2% to 3% being appropriate, and maybe the next cut behind it?

Is it trying to get to 100% pass-through, because 2% to 3% doesn't get you there. It doesn't seem to be free cash flow, because you're targeting free cash flow positive by the end of '27.

It's not margin neutrality. I'm just trying to understand when you're running these scenarios, what is the output that you are managing to?

Hey, John, thanks for the question. I would say that it kind of is to free cash flow.

It's just basically the EBIT overall. Our goal is to contribute as much to getting to positive EBIT as we can with the assets we have.

To the extent that we make decisions early and we have the ability to save more of the expenses, and we think that with the fuel price that we're assuming for the rest of the year, and demand we're expecting, especially in trough periods, I think it's actually very important that we take action soon to make sure that we do what we can to maximize our EBIT. I would say that I do think I've seen a lot more talk of capacity cuts than I've seen actual actions in the rest of the industry.

I'm not sure that I'm as positive about what you say the other airlines are doing. I want to be clear that we are taking action.

As you go back to the pre-war guide that we did, our goal was to get to positive op margin this year. We've suspended that guidance obviously, but our goal is to do everything we can to make sure we get as close to that number as possible.

Frankly, my view is, given the fuel curve we're seeing right now, it would be imprudent to make decisions that would not be profit maximizing. Now, we do have some constraints with our slot base at JFK.

I think it's worth mentioning that this is a long-term asset for the company. Unfortunately, we probably could cancel a little bit more if we were willing to take the risk on slots, but that's actually not a risk we want to take because, frankly, this is a transitory situation.

I do think we'll eventually get back to normal, and we want to make sure that we will absolutely be in the position to maintain our franchise at JFK, and I think giving up slots would be a very bad idea in the short term. The last issue is, we are so happy with what we're seeing in Fort Lauderdale.

I'd say there'd be fewer cuts in Fort Lauderdale than elsewhere, just because the demand is coming in as well as it is. Clearly, with fuel up 75%, it's not quite 75% in the fourth quarter, but with fuel up as much as it is for the rest of the year, there are absolutely going to be flights that will not be cash contributors, and those flights have to go.

That makes sense. If I just look at the fuel curve today, round numbers, it seems to imply a 30% reduction in fuel from current spot by the end of the year.

I know that we need some basis for an estimate, and I can appreciate that you guys are using the fuel curve. You've got a very large embedded fuel tailwind kind of making the math work from here.

It seems like you could hit the pass-through numbers that you're describing, even if the demand environment didn't improve at all. I'm not quite sure that that's a reasonable framework.

I don't know, it feels like you do, but maybe we could just talk about that a little bit.

I it's it's a great it's a great question. Frankly, we look at the fuel curve and wonder how realistic it is during that time period.

That's one of the reasons why, I think to the comment earlier in the answer, when we hit those windows of, making commitments on costs with respect to things like, bidding pilots schedules and things like that, before we get to that point, we will reevaluate the capacity plan we're offering. Turns out the fuel curve ends up being better than we expected, maybe we put some flights back.

If the fuel curve is worse than we expected, we will make sure to do the evaluation when we can pull more, with the goal of of, of saving as much as the money as possible. My view of this is this is just prudent business, and we will continue to watch that curve.

I think if you think about that timeframe of 90, 90-ish days out when we have a pretty good handle on saving some of the costs, I think we'll have a much, much better view of the fuel, of the fuel, cost 90 days out than we have right now for six months out.

We're going to maintain as much flexibility as possible. I think that's the headline.

If you could tell me where fuel's going to be in September, then I could tell you closer to what my capacity is going to look like in September. At the end of the day, given where the demand environment is right now, and the investments in Fort Lauderdale and the slot portfolio in New York, we want to be mindful.

We fully appreciate we need to be aggressive in capacity cuts, to the extent that fuel remains in a highly elevated state for the rest of the year.

Yeah. I follow the logic.

I can't tell you where fuel prices are going to be, but it seems plausible they could just be flat from here. It doesn't seem like that's being contemplated in a

That's possible, but we don't know.

in a serious way. Okay.

Yeah. It's possible.

Thanks. Thank you.

Appreciate it.